GBPUSD- Collapsing Off The 1.6692 Level

GBPUSD- Following the pair's marginal lower close on Thursday after reversing most of its intra day its intra day losses, it was seen selling off sharply in early trading today. The question now is what is the risk? The immediate risk of this sell off is the 1.6466 level, its Sept 23'09 high which the pair is current trading below and the next lies at its breaking out point at 1.6411. In order for the pair's recovery triggered off the 1.5706 level to be maintained, those levels(1.6466/11) must hold or a return back into its invalidated channel could be seen. That will expose the 1.6239 level, its Oct 19'09 low with a cut through there setting the stage for further declines towards the 1.6124 level, its Sept 30'09 high and then its Oct 14'09 high at 1.6024 ahead of the 1.5837 level, its Oct 13'09 high. On the upside, resistance lies at its Oct 21'09 high at 1.6635 with a loss of there opening up further upside risk towards the 1.6740 level, its Sept 11'09 high  where a break higher will pave the way for a run at the its YTD high at 1.7041. To avert the current downside weakness, a close above the 1.6692 level must occur. On the whole, with the pair being challenged by a sharp corrective declines, immediate risk now remains to the downside.

Daily Chart: GBPUSD